Genesee & Wyoming Provides Fourth Quarter 2015 Business Update; Reports Traffic for N

Railroadforums.com is a free online Railroad Discussion Forum and Railroad Photo Gallery for railroaders, railfans, model railroaders and anyone else who is interested in railroads. We cover a wide variety of topics, including freight trains, passenger and commuter railroads, rail news and information, tourist railroads, railway museums and railroad history.

RSS Feed

Automated RSS Reader
Genesee & Wyoming Provides Fourth Quarter 2015 Business Update; Reports Traffic for November 2015
<location value="LU/us.ct.darien" idsrc="xmltag.org" style="font-family: Arial, sans-serif;">DARIEN, Conn.</location>--(BUSINESS WIRE)--Dec. 11, 2015-- <org value="NYSE:GWR" idsrc="xmltag.org" style="font-family: Arial, sans-serif;">Genesee & Wyoming Inc.</org> (G&W) (NYSE:GWR) today reported traffic volumes for <chron style="font-family: Arial, sans-serif;">November 2015</chron>.
Fourth Quarter 2015 Business Update
In the fourth quarter of 2015 through November, G&W’s shipments have been weaker than expected. In G&W’s North American Operations, shipments of steam coal, agricultural products and metals are below expectations by approximately 8,000, 3,000 and 3,000 carloads, respectively. In G&W’s<location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org" style="font-family: Arial, sans-serif;">U.K.</location>/European Operations, steam coal shipments are approximately 4,000 carloads below expectations. In G&W’s Australian Operations, metallic ores shipments are approximately 1,000 carloads below expectations largely due to the recent suspension of rail shipments from a customer manganese mine. As a result, G&W currently expects its consolidated earnings per diluted share to be approximately <money style="font-family: Arial, sans-serif;">$0.10</money> below its prior guidance of <money style="font-family: Arial, sans-serif;">$0.90 to $0.95</money>provided on <chron style="font-family: Arial, sans-serif;">October 30, 2015</chron>.
<chron style="font-family: Arial, sans-serif;">November 2015</chron> Traffic
G&W’s traffic in <chron style="font-family: Arial, sans-serif;">November 2015</chron> was 239,558 carloads, an increase of 78,889 carloads, or 49.1%, compared with <chron style="font-family: Arial, sans-serif;">November 2014</chron>. G&W’s same-railroad traffic in <chron style="font-family: Arial, sans-serif;">November 2015</chron> was 138,348 carloads, a decrease of 22,321 carloads, or 13.9%, compared with <chron style="font-family: Arial, sans-serif;">November 2014</chron>.
The table below sets forth summary total carloads by segment for <chron style="font-family: Arial, sans-serif;">November 2015</chron> and <chron style="font-family: Arial, sans-serif;">November 2014</chron>.
November November %
Segment20152014ChangeChange
North American Operations124,220142,374(18,154)(12.8%)
Australian Operations16,18918,295(2,106)(11.5%)
U.K./European Operations[SUP](1)[/SUP]99,149n/an/an/a
Total G&W Operations239,558160,66978,88949.1%

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
(1) Operations from the <org style="font-family: Arial, sans-serif;">Freightliner Group</org> acquired on <chron style="font-family: Arial, sans-serif;">March 25, 2015</chron>
<chron>November 2015</chron> Highlights by Segment

  • North American Operations: Traffic in <chron>November 2015</chron> was 124,220 carloads, a decrease of 12.8% compared with <chron>November 2014</chron>. On a same-railroad basis, traffic declined 20,215 carloads, or 14.2%. The decrease was primarily due to reduced shipments of coal & coke, metals and overhead Class 1 traffic, partially offset by increased shipments of petroleum products.
  • Australian Operations: Traffic in <chron>November 2015</chron> was 16,189 carloads, a decrease of 11.5% compared with <chron>November 2014</chron>. The decrease was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines and a recent suspension of rail shipments from a customer manganese mine partially offset by increased shipments of agricultural products and mineral & stone traffic.
  • <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/European Operations: Traffic was 99,149 carloads in <chron>November 2015</chron>. Traffic in <chron>November 2015</chron> was led by intermodal traffic in the <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location> and continental <location value="LR/eur" idsrc="xmltag.org">Europe</location> as well as minerals & stone traffic in <location value="LC/pl;LB/eeur" idsrc="xmltag.org">Poland</location> and the <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>
The table below sets forth North American Operations carload information for <chron>November 2015</chron> and <chron>November 2014</chron> by commodity group.
November November
North American Operations:20152014Change% Change
Agricultural Products16,86317,835(972)(5.4%)
Autos & Auto Parts1,9743,111(1,137)(36.5%)
Chemicals & Plastics14,45413,2291,2259.3%
Coal & Coke17,00430,912(13,908)(45.0%)
Food & Kindred Products4,7534,6121413.1%
Intermodal-151(151)(100.0%)
Lumber & Forest Products10,83910,1916486.4%
Metallic Ores1,9431,70224114.2%
Metals9,54113,288(3,747)(28.2%)
Minerals & Stone15,50915,3681410.9%
Petroleum Products8,9287,3271,60121.9%
Pulp & Paper14,30613,9303762.7%
Waste3,2753,1451304.1%
Other4,8317,573(2,742)(36.2%)
Total carloads124,220142,374(18,154)(12.8%)
Carloads from New Railroads[SUP](1)[/SUP]2,061
Same-railroad carloads122,159142,374(20,215)(14.2%)

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
(1) Total carloads from North American rail operations commenced or acquired by G&W in the last 12 months, including the <org>Arkansas Midland Railroad</org>, the <org>Prescott & Northwestern Railroad</org> and the <org>Warren & Saline River Railroad</org>. These railroads contributed 884 carloads of minerals & stone traffic, 429 carloads of lumber & forest products traffic, 362 carloads of chemicals & plastics traffic and 386 carloads from all other commodities.
The following highlights relate to North American same-railroad traffic, excluding traffic from the <org>Arkansas Midland Railroad</org>, the <org>Prescott & Northwestern Railroad</org> and the <org>Warren & Saline River Railroad</org>, which were acquired on <chron>January 5, 2015</chron>.

  • North American Operations traffic decreased 20,215 carloads, or 14.2%, primarily due to reduced shipments of coal & coke, metals and overhead Class 1 traffic, partially offset by increased shipments of petroleum products.
  • Coal & coke traffic decreased 13,908 carloads, or 45.0%, primarily due to weaker than expected shipments in G&W’s Midwest, Central, <location>Ohio Valley</location>and Mountain West regions.
  • Metals traffic decreased 3,794 carloads, or 28.6%, primarily due to weaker than expected shipments in G&W’s Southern, <location>Ohio Valley</location>, Coastal and Northeast regions.
  • G&W’s Other commodity group traffic decreased 2,742 carloads, or 36.2%, primarily due to decreased overhead Class 1 shipments.
  • Petroleum products traffic increased 1,568 carloads, or 21.4%, primarily due to increased shipments in G&W’s Ohio Valley Region.
  • All remaining traffic decreased by a net 1,339 carloads.
The table below sets forth Australian Operations carload information for <chron>November 2015</chron> and <chron>November 2014</chron> by commodity group.
November November %
Australian Operations:20152014ChangeChange
Agricultural Products4,5703,0681,50249.0%
Intermodal5,1535,558(405)(7.3%)
Metallic Ores9255,129(4,204)(82.0%)
Minerals & Stone5,5144,5141,00022.2%
Petroleum Products272613.8%
Total carloads16,18918,295(2,106)(11.5%)

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
The decrease in Australian Operations traffic was primarily due to reduced metallic ores shipments from previously announced closures of customer iron ore mines and a recent suspension of rail shipments from a customer manganese mine, partially offset by increased shipments of agricultural products and mineral & stone traffic.
The table below sets forth <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/European Operations carload information for <chron>November 2015</chron> by commodity group.
November
U.K./European Operations:2015
Agricultural Products37
Coal & Coke5,447
Intermodal77,921
Minerals & Stone14,800
Other944
Total carloads99,149

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
Traffic volumes in the <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/<location value="LR/eur" idsrc="xmltag.org">Europe</location> operating segment include operations from Freightliner. G&W’s existing European operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.
Fourth Quarter of 2015 Through November Traffic
The table below sets forth summary total carloads by segment for the fourth quarter of 2015 through November and the fourth quarter of 2014 through November.
QTD Nov QTD Nov %
Segment20152014ChangeChange
North American Operations261,852300,608(38,756)(12.9%)
Australian Operations29,98834,826(4,838)(13.9%)
U.K./European Operations[SUP](1)[/SUP]206,002n/an/an/a
Total G&W Operations497,842335,434162,40848.4%

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
(1) Operations from the <org>Freightliner Group</org> acquired on <chron>March 25, 2015</chron>
The table below sets forth North American Operations carload information for the fourth quarter of 2015 through November and the fourth quarter of 2014 through November by commodity group.
QTD QTD
North American Operations:Nov 2015Nov 2014Change% Change
Agricultural Products35,95336,510(557)(1.5%)
Autos & Auto Parts3,8306,510(2,680)(41.2%)
Chemicals & Plastics29,54627,8481,6986.1%
Coal & Coke36,32759,742(23,415)(39.2%)
Food & Kindred Products10,18910,527(338)(3.2%)
Intermodal23483(460)(95.2%)
Lumber & Forest Products23,10122,6484532.0%
Metallic Ores3,8823,6052777.7%
Metals19,48130,251(10,770)(35.6%)
Minerals & Stone35,22135,0142070.6%
Petroleum Products17,51816,8806383.8%
Pulp & Paper28,43629,182(746)(2.6%)
Waste6,9196,7921271.9%
Other11,42614,616(3,190)(21.8%)
Total carloads261,852300,608(38,756)(12.9%)
Carloads from New Railroads[SUP](1)[/SUP]4,485
Same-railroad carloads257,367300,608(43,241)(14.4%)

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
(1) Total carloads from North American rail operations commenced or acquired by G&W in the last 12 months, including the <org>Arkansas Midland Railroad</org>, the <org>Prescott & Northwestern Railroad</org> and the <org>Warren & Saline River Railroad</org>. These railroads contributed 1,962 carloads of minerals & stone traffic, 927 carloads of lumber & forest products traffic, 784 carloads of chemicals & plastics traffic and 812 carloads from all other commodities.
The table below sets forth Australian Operations carload information for the fourth quarter of 2015 through November and the fourth quarter of 2014 through November by commodity group.
QTD Nov QTD Nov %
Australian Operations:20152014ChangeChange
Agricultural Products6,1964,6971,49931.9%
Intermodal10,22011,074(854)(7.7%)
Metallic Ores2,5929,988(7,396)(74.0%)
Minerals & Stone10,9279,0181,90921.2%
Petroleum Products534948.2%
Total carloads29,98834,826(4,838)(13.9%)

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
The table below sets forth <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/European Operations carload information for the fourth quarter of 2015 through November by commodity group.
QTD Nov
U.K./European Operations:2015
Agricultural Products77
Coal & Coke10,627
Intermodal161,016
Minerals & Stone32,263
Other2,019
Total carloads206,002

<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
Other
The term carload represents physical railcars and estimated railcar equivalents of commodities for which G&W is paid on a metric ton or other measure to move freight, as well as intermodal units.
Historically, G&W has found that traffic information may be indicative of freight revenues on its railroads. Freight revenues are revenues for which G&W is paid on a per car, per container or per ton basis to move freight. Activities such as railcar switching, port terminal shunting, traction services and other similar freight-related services are excluded from our traffic information as the resulting revenues are not classified as freight revenue. Traffic information may not be indicative of total operating revenues, operating expenses, income from operations or net income.
G&W’s three reportable segments are summarized as follows:

  • The North American Operations segment is comprised of nine operating regions in the U.S. and <location value="LC/ca;LB/nam" idsrc="xmltag.org">Canada</location>. This segment represents approximately 57% of G&W’s total operating revenues and approximately 75% of G&W’s total income from operations.
  • The Australian Operations segment is comprised of G&W’s existing operations in <location value="LC/au;LB/anz" idsrc="xmltag.org">Australia</location> and the newly-acquired Freightliner Australia operations. This segment represents approximately 12% of G&W’s total operating revenues and approximately 14% of G&W’s total income from operations. Revenues from Freightliner’s <location value="LC/au;LB/anz" idsrc="xmltag.org">Australia</location> operations are not reported as freight revenues and therefore are not included in this traffic report.
  • The <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/European Operations segment is comprised of Freightliner’s operations in the <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location> and continental <location value="LR/eur" idsrc="xmltag.org">Europe</location> and G&W’s existing European port shunting operations. This segment represents approximately 31% of G&W’s total operating revenues and approximately 11% of G&W’s total income from operations. G&W’s existing European port shunting operations are not reported as freight revenues and therefore are not included in this traffic report. As a result, there is no traffic information provided for the comparative period in the prior year for this segment.
About G&W
<org value="NYSE:GWR" idsrc="xmltag.org">Genesee & Wyoming</org> owns or leases 120 freight railroads worldwide that are organized in 11 operating regions with 7,500 employees and more than 2,500 customers.

  • G&W’s nine North American regions serve 41 U.S. states and four Canadian provinces and include 113 short line and regional freight railroads with more than 13,000 track-miles.
  • G&W’s <location value="LC/au;LB/anz" idsrc="xmltag.org">Australia</location> Region provides rail freight services in <location value="LU/au..nwswls" idsrc="xmltag.org">New South Wales</location>, the Northern Territory and <location value="LC/au;LB/anz" idsrc="xmltag.org">South Australia</location> and operates the 1,400-mile Tarcoola-to-Darwin rail line.
  • G&W’s <location value="LC/gb;LB/neur;LC/uk" idsrc="xmltag.org">U.K.</location>/<location value="LR/eur" idsrc="xmltag.org">Europe Region</location> is led by Freightliner, the U.K.’s largest rail maritime intermodal operator and second-largest rail freight company. Operations also include heavy-haul in <location value="LC/pl;LB/eeur" idsrc="xmltag.org">Poland</location> and <location value="LC/de;LB/weur" idsrc="xmltag.org">Germany</location> and cross-border intermodal services connecting Northern European seaports with key industrial regions throughout the continent.
G&W subsidiaries provide rail service at more than 40 major ports in <location value="LB/nam" idsrc="xmltag.org">North America</location>, <location value="LC/au;LB/anz" idsrc="xmltag.org">Australia</location> and <location value="LR/eur" idsrc="xmltag.org">Europe</location> and perform contract coal loading and railcar switching for industrial customers.
For more information, visit gwrr.com.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the future performance of G&W that are based on current expectations, estimates and projections about our industry, management’s beliefs and assumptions made by management. Words such as “anticipates,” “intends,” “plans,” “believes,” “could,” “should,” “seeks,” “expects,” “will,” “estimates,” “trends,” “update,” “outlook,” variations of these words and similar expressions are intended to identify these forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to forecast, including, but not limited to, those risks noted in our 2014 Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q under “Risk Factors.” Therefore, actual results may differ materially from those expressed or forecasted in any such forward-looking statements. Forward-looking statements speak only as of the date of this press release or as of the date they were made. G&W does not undertake, and expressly disclaims, any duty to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151211005099/en/
Source: <org value="NYSE:GWR" idsrc="xmltag.org">Genesee & Wyoming Inc.</org>
Genesee & Wyoming Inc.
Thomas D. Savage, 1-203-202-8900
Vice President – Corporate Development & Treasurer
Web Site: http://www.gwrr.com


<tbody style="font-family: inherit; border: 0px; font-weight: inherit; font-style: inherit; vertical-align: baseline; margin: 0px; padding: 0px;">
</tbody>
 
Last edited by a moderator:




RailroadForums.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to amazon.com

RailroadBookstore.com - An online railroad bookstore featuring a curated selection of new and used railroad books. Railroad pictorials, railroad history, steam locomotives, passenger trains, modern railroading. Hundreds of titles available, most at discount prices! We also have a video and children's book section.

ModelRailroadBookstore.com - An online model railroad bookstore featuring a curated selection of new and used books. Layout design, track plans, scenery and structure building, wiring, DCC, Tinplate, Toy Trains, Price Guides and more.

Affiliate Disclosure: We may receive a commision from some of the links and ads shown on this website (Learn More Here)

Top